Why It Matters: As counterintuitive as it may be, the luxury subcompact and compact segments are thriving. In addition to coddling aspirational buyers, the segment serves as a handy launch pad for larger, more expensive products as customers’ needs change. In Cadillac’s case, that would mean the slightly larger XT5 crossover, a forthcoming three-row CUV, or the truck-based Escalade SUV.
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